The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is
A) an expansion in investment resulting from a reallocation of resources away from consumption.
B) a larger output resulting from a more efficient use of resources.
C) greater equality of income resulting from an increase in the number of workers.
D) an increase in the profitability of business enterprises resulting from an increase in investment.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that nations should specialize in producing goods where they have a lower opportunity cost, leading to a more efficient allocation of resources and a larger overall output.

The Primary Benefit That Results When a Nation Employs Its